Cell production has the flow production line split into a number of self-contained units. Each
team or cell is responsible for a significant part of the finished article and, rather than each
person only carrying out only one very specific
GOODMAN SCHOOL OF BUSINESS
OPER 2P91 Operations Management
Fall Term 2016 (Section 1) Mondays 19:00-22:00 in AS 215
Heizer, J. and Render, B., Operations Management (11th edition) available in
the Bookstore (recommended
PROJECT SCHEDULING EXERCISE
1. See below.
2. The critical path is B-C-D-E-F-G-H-I-J-L-M-O-P-U
The project completion time is 64 days. Therefore, the project cannot be completed on time.
Some reasons for international location
Historical - a sugar refining firm is likely to own plant in countries where sugar is grown,
as well as a network to market and service the business worldwide
Service - many products and servi
A firms productivecapacity is the total level of output or production that it could produce in a
given time period. Capacity utilisation is the percentage of the firms total possible production
capacity that is actually being used.
Critical Path Analysis
Critical Path Analysis (CPA) is a project management tool that:
Sets out all the individual activities that make up a larger project.
Shows the order in which activities have to be undertaken.
Shows which activities can only take pl
Economies and diseconomies of scale
Economies of scale are advantages that arise for a firm because of its larger size, or scale of
operation. These advantages translate into lower unit costs (or
improved productiveefficiency), although some economies of
Increasing and reducing productive capacity
See the notes on capacity utilisation for a discussion of possible reasons for low or high
capacity utilisation, and the problems that can be caused for a business.
Exam hint: the following solutions might be us
A simple approach to checking the level of stock in a business is to count it on the shelves this
is called stock-taking. For many businesses, such as a small shop, this is a thoroughly practical
approach. Most businesses conduc
When projects are major pieces of work undertaken over an extended period of time, it is
important to manage them carefully. In many cases, managing a project means co-ordinating a
number of different resources, including people from di
Managing stock effectively is important for any business, because without enough stock,
production and sales will grind to a halt. Stock control involves careful planning to ensure that
the business has sufficient stock of the right quality
Methods of production
Production is at the heart of all industry and is the process of using the resources of a firm to
convert inputs into outputs, which are products or services desired by customers.
Job production is used to create one-o
Kaizen (Continuous Improvement) & Quality Circles
This forms part of the Japanese approach to management, or Lean Production.
Kaizen , or Continuous Improvement is a policy of constantly introducing small incremental
changes in a business in order to impr
SECTION I: MULTIPLE CHOICE
1. Operations management is responsible for orchestrating all the resources needed to produce the final product.
This includes all of the following except
obtaining customer feedback